Riyadh – Mubasher: Amana Cooperative Insurance's board approved on Wednesday a business plan to be submitted to Saudi Arabian Monetary Agency (SAMA) to meet the solvency margin requirements.
This step came after the company’s board held an emergency meeting to discuss the reasons behind the financial deterioration, as per SAMA request, according to a bourse filing on Thursday.
On 7 December, Amana received a letter from SAMA obliging the company to make a plan to meet the solvency margin requirements no later than 29 December, 2016.
In case the company did not fulfil the requirements, SAMA will take all the legal actions against the company to protect clients’ rights, the statement said.
SAMA’s decision came after the agency gave the company an interval to meet solvency margin requirements but the financial statements by 30 September, 2016 revealed a decrease in the margin below the required 75%, adding to suffering accumulated losses of 65% of capital.
